Typically paid out in the native asset of its network at a fixed, but regressive rate, block rewards are often the only source of new currency creation on a network.

They provide a key element of the incentive structure that keeps blockchain networks operating in a decentralized fashion.

In Proof-of-Work blockchains like Bitcoin, block validation and block rewards are the remit of miners. In newer models like Ethereum’s upcoming Proof of Stake, the block reward is paid to the collateral staking validator nodes.